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Children’s Place shareholders yesterday had the same reaction to the company exiting the Disney Store business as they did when it acquired the retail chain four years ago – a telling indicator of the failed promises and dashed hopes the deal has brought to them.

Shares in The Children’s Place rose $2.65, or 13.5 percent, to close at $22.25, principally on the news that it was abandoning its relationship with Disney.

Investors had a similar response in October 2004, when Children’s Place announced that it was entering into a retail relationship with Disney that was to last between 15 and 45 years. Back then, Children’s Place shares jumped a stunning $4.67, or 18.7 percent.

However, that relationship, which involved transferring control of Disney’s 313 North American stores – except for outlets located at Disney’s theme parks and the chain’s Fifth Avenue location in Manhattan – has been a total bust.

“The company has decided to exit the Disney Store North America business after a thorough review of the operation, its potential for earnings growth, its capital needs and its ability to fund such needs from its own resources,” Children’s Place said in a statement yesterday.

The Children’s Place wrote down its Disney Store investment by $80.3 million in the fourth quarter and said exiting the business would cost between $50 million and $100 million.

While no cash changed hands in the original deal, The Children’s Place did agree to invest $100 million into the Disney Store chain and pay royalties from the sale of Disney merchandise.

Both The Children’s Place and Disney confirmed yesterday that they were in “advanced discussions” for the Mouse House to acquire about 200 of the existing stores, which cater to infants through children aged 10.